Bridgestone to start second plant near Pune
30 Mar 2010
Mumbai: In keeping with the rapid growth i the auto sector, Bridgestone India Private Limited today said that it will set up a new plant near Pune, to make tyres for passenger cars, and radial tyres for trucks and buses.
Tyre demand in India is expected to grow significantly as automotive production and unit sales increase in step with the expansion of road infrastructure that is the result of economic growth.
Bridgestone said that it expected the total investment in the new plant, to be located at Chakan on the ouskirts of Pune, to be approximately Y50 billion (approximately Rs2,600 crore) in a phased manner.
The production of car tyres is scheduled to begin in January 2013 and commercial vehicle production in August 2013.
By 2020, the production capacity is slated to reach 10,000 units of car tyres and 3,000 units of truck and bus radial tyres per day, the company said in a press release.
Bridgestone said that it has reached an understanding with the Maharashtra government to acquire approximately 770,000 square metre (8.288 million sq ft) of land at Chakan Industrial Area near Pune.
''India is growing rapidly, and its potential seems to be unlimited," said H.Tanigawa, managing director, Bridgestone India Pvt. Ltd. "Therefore our decision to establish the company's second tire production is in response to ever increasing demand in Indian market. We are now going to put more focus on Indian market than ever, and are looking for newer possibilities to grow our operations in the near future''
Bridgestone India Privateis a 100-per cent subsidiary of Bridgestone Corporation, was set up in 1996 and established its first plant at Kheda in Madhya Pradesh at an investment of Rs275 crore, which was inaugurated in November 1998.
